Tron (cryptocurrency)

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    TRON
    TRON
    Denominations
    CodeTRX
    MainnetTron
    Development
    Original author(s)Justin Sun
    Development statusActive
    LicenseOpen-source licenses
    Website
    Websitetron.network

    TRON is a decentralized, blockchain-based operating system with smart contract functionality, proof-of-stake principles as its consensus algorithm and a cryptocurrency native to the system, known as Tronix (TRX). It was established in March 2014 by Justin Sun and since 2017 has been overseen and supervised by the TRON Foundation, a non-profit organization in Singapore, established in the same year. It is open-source software.

    It was originally an Ethereum-based ERC-20 token, which switched its protocol to its own blockchain in 2018. TRC20 has a fee of 5 trones per 1 USDT coin for the transfer. On some cryptocurrency wallets, users can't withdraw their USDT funds until they have enough money for the network fee.

    History

    Founding and Early Developments

    TRON was founded by Justin Sun in 2017.[1] The TRON Foundation was established in July 2017 in Singapore. The TRON Foundation raised $70 million in 2017 through an initial coin offering shortly before China outlawed the digital tokens.[2] The testnet, Blockchain Explorer, and Web Wallet were all launched by March 2018. TRON Mainnet launched shortly afterward in May 2018, marking the Odyssey 2.0 release as a technical milestone for TRON.

    Transition to Independent Layer-1 and BitTorrent Acquisition

    In June 2018, TRON switched its protocol from an ERC-20 token on top of Ethereum to an independent peer-to-peer network.[3] On 25 July 2018, the TRON Foundation announced it had finished the acquisition of BitTorrent, a peer-to-peer file sharing service.[4] With this, TRON declared its independence with the creation of the Genesis block, along with July 2018 acquisition of BitTorrent, a platform with over 100 million monthly active users, was integrated into the TRON ecosystem.[5] Upon this acquisition, in August 2018, BitTorrent Founder Bram Cohen also disclosed that he was leaving the company to found Chia, an alternative to bitcoin created to be a less energy-intensive cryptocurrency.[6]

    Market Performance and BitTorrent Token Sale

    By January 2019, TRON had a total market cap of about 1.6 USDT [7] Despite this market performance, some authors viewed TRON as a typical case of the complex and disordered nature of cryptocurrencies. In February 2019, after being acquired by TRON Foundation, BitTorrent started its own token sale based on the TRON network.[8][9]

    Transition to a DAO

    In late 2021, Justin Sun resigned as CEO of the TRON Foundation, which was subsequently dissolved. This led to the transition of the organization to a DAO.[10] TRON officially transitioned to a Decentralized Autonomous Organization (DAO) in December 2021.[11] The network does not collect user data or maintain any private information about user demographics. As a DAO, TRON does not have the ability to control its user composition, a characteristic it shares with other decentralized blockchain networks.

    Recent Achievements and Statistics

    As of June 2023, TRON reportedly had over 165.5 million total user accounts, more than 5.81 billion total transactions, and over $11.79 billion in total value locked (TVL), according to data provided by TRONSCAN. Additionally, TRON reportedly hosted the largest circulating supply of Tether (USDT) globally since April 2021.[12]

    Innovations and Partnerships

    The TRON blockchain facilitated the launch of the over-collateralized, multi-chain, decentralized stablecoin USDD in May 2022.[13] This stablecoin was backed by the first-ever crypto reserve for the blockchain industry, TRON DAO Reserve.[14]

    In October 2022, TRON was identified as the national blockchain for the Commonwealth of Dominica, marking the first instance of a major public blockchain partnering with a sovereign nation to enhance its national blockchain infrastructure. Alongside this, seven TRON-based tokens received statutory status in Dominica as authorized digital currencies and mediums of exchange.[15]

    The TRON Climate Initiative was launched in January 2023, aimed at promoting sustainability in the blockchain sector. Concurrently, TRON launched the fourth season of the TRON Grand Hackathon, known as "HackaTRON," in February 2023.[16] During this period, TRON also entered a partnership with Oraichain to incorporate artificial intelligence into blockchain development.[17]

    Controversies

    In March 2023, Sun and Tron were sued by the U.S. Securities and Exchange Commission for selling unregistered securities related to the sale and promotion of Tronix (TRX) and BitTorrent (BBT) tokens, alleging that Sun and Tron had engaged in wash trading in the secondary market for TRX in order to buoy its price.[18][19][20] Eight celebrities, including Akon, Ne-Yo, Austin Mahone, Soulja Boy, Lindsay Lohan, Jake Paul and Lil Yachty, were charged with promoting these cryptocurrencies without disclosing that they were sponsored, with all those other than Soulja Boy, and Mahone settling with the FTC for more $400,000, without admitting or denying the charges.[21][22][18]

    Architecture

    TRON adopts a 3-layer architecture divided into storage layer, core layer, and application layer. The TRON protocol adheres to Google protocol buffers, which intrinsically supports multi-language extension.

    The TRON protocol, maintained primarily by the TRON Foundation, distributes computing resources equally among TRX holders with internal pricing mechanisms such as bandwidth and energy.[23] TRON provides a decentralized virtual machine, which can execute a program using an international network of public nodes. The network has zero transaction fees and conducts approximately 2,000 transactions per second.[24]

    The implementations of TRON require minimal transaction fees in order to prevent malicious users from performing DDoS attacks for free. In this respect, EOS.IO and TRON are quite similar, due to the negligible fees, high transactions per second, and high reliability, and as such are regarded as a new generation of blockchain systems.[25] Michael Borkowski, Marten Sigwart, Philipp Frauenthaler, Taneli Hukkinen and Stefan Schulte defined TRON as an Ethereum clone, with no fundamental differences.[26] The transactions per second rate on Tron's blockchain was questioned because it was far below its theoretical claim.[27]

    Criticisms

    In January 2018, via a Tweet, Juan Benet, the CEO at Protocol Labs, revealed that the white paper of TRON copied portions of the white papers from IPFSbot and MineFilecoin, without a single reference.[28] Researchers from Digital Asset Research (DAR) discovered multiple instances of code copied from other projects in the Tron code base. It is also accused of violating the GNU Lesser General Public License v3.0 (LGPL) because the project does not mention that its client was derived from EthereumJ, a Java implementation of Ethereum. These accusations were denied by the TRON Foundation, the organization behind the design of the system.[29]

    In May 2019, the cyber-security testing service HackerOne revealed[30] that just one computer could have brought TRON's entire blockchain to a halt.[31] The revelation showed that a barrage of requests sent by a single PC could be used to squeeze the power of the blockchain's CPU, overload the memory, and perform a distributed denial-of-service (DDoS) attack.[32]

    On 13 June 2022, Tron's algorithmic stablecoin, USDD, lost its peg to the US Dollar, trading at 0.96 per dollar for about a month.[33]

    References

    1. ↑ Mohamed, Theron. "Justin Sun postponed a $4.6 million lunch with Warren Buffett, plowed $10 million into GameStop stock, and lost out on a $69 million NFT. Here's a look at the crypto whiz kid". Business Insider. Insider. Retrieved 23 June 2021.
    2. ↑ Lee, Amanda (31 July 2018). "This coin issuer is all cashed up amid China's ban, but is it all hype?". South China Morning Post. Archived from the original on 1 August 2018. Retrieved 26 August 2019.
    3. ↑ "What is Tron ? | All about in Tron in Short | Crypto Currency Tron". Tutorials Link. Retrieved 8 November 2021.
    4. ↑ Heater, Brian (24 July 2017). "Blockchain startup Tron closes BitTorrent acquisition". TechCrunch. Archived from the original on 20 August 2019. Retrieved 20 August 2019.
    5. ↑ "Cointelegraph Bitcoin & Ethereum Blockchain News". Cointelegraph. Retrieved 7 August 2023.
    6. ↑ Beedham, Matthew (20 August 2018). "BitTorrent inventor walks away after TRON acquisition". The Next Web. Hard Fork. Archived from the original on 20 August 2018. Retrieved 20 August 2019.
    7. ↑ "The Hottest Cryptocurrency, Tron, Rekindles Memories of the Bitcoin Bubble". Bloomberg.com. 17 January 2019. Archived from the original on 8 February 2019. Retrieved 1 September 2019.
    8. ↑ Clark, Bryan (3 January 2019). "BitTorrent just launched a TRON-based cryptocurrency token". The Next Web. Hard Fork. Archived from the original on 3 January 2019. Retrieved 26 August 2019.
    9. ↑ "BitTorrent unveils cryptocurrency so users can pay for faster download times". VentureBeat. 3 January 2019. Archived from the original on 3 January 2019. Retrieved 1 September 2019.
    10. ↑ "Justin Sun Is Retiring From Tron – But Not Crypto". www.coindesk.com. 17 December 2021. Retrieved 7 August 2023.
    11. ↑ "TRON's Annual Highlights: The Top 22 from '22". The Block. Retrieved 7 August 2023.
    12. ↑ "TRON MainNet Celebrates Fifth Anniversary and Stands Now as the Preferred Global Blockchain". News Direct. Retrieved 7 August 2023.
    13. ↑ "USDD upgrades into the first over-collateralized decentralized stablecoin". Cointelegraph. 5 June 2022. Retrieved 7 August 2023.
    14. ↑ Hamacher, Decrypt / Adriana (14 November 2022). "Justin Sun: Tron's USDD Is Taking Stablecoins to 'The Next Level'". Decrypt. Retrieved 7 August 2023.
    15. ↑ Chainwire. "TRON Takes the Lead in Developing the Digital Identification Program for Dominica Metaverse". CryptoSlate. Retrieved 7 August 2023.
    16. ↑ Trondao.org. "TRON Ecosystem Climate Program | TRONDAO". TRON DAO. Retrieved 7 August 2023.
    17. ↑ "HackaTRON Season 4 - TRON Grand Hackathon | Hackathon | DoraHacks". dorahacks.io. Retrieved 7 August 2023.
    18. ↑ 18.0 18.1 "SEC.gov | SEC Charges Crypto Entrepreneur Justin Sun and his Companies for Fraud and Other Securities Law Violations". www.sec.gov. Retrieved 22 March 2023.
    19. ↑ Wigglesworth, Robin (22 March 2023). "SEC goes after Justin Sun, Lindsay Lohan and Soulja Boy". Financial Times.
    20. ↑ Roth, Emma (22 March 2023). "SEC sues Justin Sun for his crypto schemes, along with Lindsay Lohan, Jake Paul, and Soulja Boy". The Verge. Retrieved 22 March 2023.
    21. ↑ Mueller, Julia (22 March 2023). "SEC charges Lindsay Lohan, Jake Paul with crypto violations". The Hill. Retrieved 22 March 2023.
    22. ↑ Hipes, Patrick (22 March 2023). "Lindsay Lohan, Jake Paul, Lil Yachty Among Celebrities Charged In SEC Crypto Case". Deadline Hollywood. Retrieved 22 March 2023.
    23. ↑ Dimaz Ankaa Wijaya, Joseph Liu, Ron Steinfeld, Dongxi Liu, and Limerlina, 'Senarai: A Sustainable Public Blockchain-Based Permanent Storage Protocol', in Cryptology and Network Security 18th International Conference, CANS 2019, Fuzhou, China, 25–27 October 2019, Proceedings, ed. by Yi Mu, Robert Deng, Xinyi Huang (Springer, 2019), pp. 235-46.
    24. ↑ "Virtual Machine Introduction". TRON Developer Hub. September 2020. Archived from the original on 24 November 2020. Retrieved 11 June 2021.
    25. ↑ Valdeolmillos, Diego; Mezquita, Yeray; González-Briones, Alfonso; Prieto, Javier; Corchado, Juan Manuel (2020). "Blockchain Technology: A Review of the Current Challenges of Cryptocurrency". In Prieto, Javier; Das, Ashok Kumar; Ferretti, Stefano; Pinto, António; Corchado, Juan Manuel (eds.). Blockchain and Applications. Advances in Intelligent Systems and Computing. Vol. 1010. Springer International Publishing. pp. 153–160. doi:10.1007/978-3-030-23813-1_19. ISBN 978-3-030-23813-1. S2CID 195656299.
    26. ↑ Borkowski, Michael; Sigwart, Marten; Frauenthaler, Philipp; Hukkinen, Taneli; Schulte, Stefan (2019). "Dextt: Deterministic Cross-Blockchain Token Transfers". IEEE Access. 7: 111030–111042. arXiv:1905.06204. doi:10.1109/access.2019.2934707. ISSN 2169-3536.
    27. ↑ Li, Huawei; Li, Zhihuai; Tian, Na (2020). "Resource Bottleneck Analysis of the Blockchain Based on Tron's TPS". In Liu, Yong; Wang, Lipo; Zhao, Liang; Yu, Zhengtao (eds.). Advances in Natural Computation, Fuzzy Systems and Knowledge Discovery. Advances in Intelligent Systems and Computing. Vol. 1075. Springer International Publishing. pp. 944–950. doi:10.1007/978-3-030-32591-6_103. ISBN 978-3-030-32591-6. S2CID 209082724.
    28. ↑ Brown, Mike (9 January 2018). "Is Tron Plagiarized? White Paper Controversy Hits Cryptocurrency". Inverse. Archived from the original on 16 February 2018. Retrieved 24 August 2019.
    29. ↑ Bailey, Jonathan (1 February 2018). "The Multi-Billion Dollar Plagiarism Scandal". Plagiarism Today. Archived from the original on 1 September 2019. Retrieved 1 September 2019.
    30. ↑ "Tron Foundation disclosed on HackerOne: DOS attack by consuming all..." HackerOne. Archived from the original on 6 May 2019. Retrieved 31 August 2019.
    31. ↑ Canellis, David (6 May 2019). "TRON suffered from a critical bug that could've crashed its entire blockchain". The Next Web. Hard Fork. Archived from the original on 6 May 2019. Retrieved 31 August 2019.
    32. ↑ Osborne, Charlie. "TRON critical security flaw could break the entire blockchain". ZDNet. Archived from the original on 8 May 2019. Retrieved 31 August 2019.
    33. ↑ "Another algorithmic stablecoin loses its peg as Tron's USDD falls, with founder Justin Sun vowing to deploy $2 billion". Fortune. Archived from the original on 15 June 2022. Retrieved 14 June 2022.

    External links

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